Information On Schemes
What is Service Exports from India Scheme (SEIS)?
SEIS scheme is a cash reward to the Service Exporters who are exporting Notified Services from India.The reward is in the form of Transferable Scrips @ 3% to 7% on the Net Foreign Exchange earned by the Service Provider in a year. This Transferable SEIS scrips can be immediately monetized i.e encased. This reward is for the services and rates as listed in the Annexure to APP3D.
It is to be noted that the reward is for the services rendered in the manner as per para 9.51(i) and para 9.51 (ii) of the FTP 2015-2020 i.e.
Para 9.51(i) Supply of a service from India to any other Country; (Mode 1 – Cross Border Trade)
Para 9.51(ii) Supply of a service from India to service consumer(s) of any other country in India; (Mode 2 – Consumption abroad).
It is also to be noted that the rewards are not available for the following: Para 9.51 (iii) Supply of a service from India through commercial presence in any other country. (Mode 3- Commercial Presence). Para 9.51 (iv) Supply of a service from India through the presence of Natural persons in any other country (Mode – Presence of Natural Persons).
The reward is in the form of freely transferable Duty Credit Scrips which can be easily mortised. The Duty Credit Scrips & goods imported / domestically procured against them are freely transferable.It is important to note that SEIS is allowed for Foreign Brands. SEIS is also allowed for Services exported from SEZ to other countries.SEIS scheme is applicable for service exports made from 01.04.2015.
To claim the Service Exports from India Scheme the Service provider is required to have an active IEC at the time of rendering such services. The service provider should have minimum net free foreign exchange earnings of US$15,000 in order to be eligible for Duty Credit Scrip. For Individual Service Providers and sole proprietorship, such minimum net free foreign exchange earnings criteria would be US$10,000.Please note that the Payment in Indian Rupees for service charges earned on specified services, shall be treated as receipt in deemed foreign exchange as per guidelines of Reserve Bank of India. The list of such services is indicated in Appendix 3E.
Ineligible categories under SEIS
Foreign exchange remittances other than those earned for rendering of notified services would not be counted for entitlement. Thus, other sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be Ineligible.Following shall not be taken into account for calculation of entitlement under theSEIS scheme.
- Foreign Exchange remittances:
- Related to Financial Services Sector
- Raising of all types of foreign currency Loans.
- Export proceeds realization of clients
- Issuance of Foreign Equity through ADRs / GDRs or other similar instruments.
- Issuance of foreign currency Bonds.
- Sale of securities and other financial instruments.
- Other receivables not connected with services rendered by financial institutions.
- Earned through contract/regular employment abroad (e.g. labour remittances).
- Payments for services received from EEFC Account
- Foreign exchange turnover by Healthcare Institutions like equity participation, donations, etc.
- Foreign exchange turnover by Educational Institutions like equity participation,donations etc.
- Export turnover relating to services of units operating under EOU / EHTP / STPI / BTPSchemes or supplies of services made to such units
- Clubbing of turnover of services rendered by EOU /EHTP / STPI / BTP units withturnover of DTA Service Providers.
- Foreign Exchange earnings for services provided by Airlines, Shipping lines serviceprovidersplying from any foreign country X to any foreign country Y routes nottouching India at all.
- Service providers in Telecom Sector.